FAC Explorer

Finding 528634 (2024-245)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-18
Audit: 346599
Organization: Willow Springs R-IV School District (MO)
Auditor: Thomas & CO PC

AI Summary

  • Core Issue: The District failed to obtain certified payroll reports from contractors, leading to non-compliance with Wage Rate Requirements for federally funded projects.
  • Impacted Requirements: OMB Uniform Guidance mandates effective internal controls for compliance with Wage Rate Requirements, which were not established by the District.
  • Recommended Follow-Up: Review and update policies to ensure contracts require prevailing wage payments, and implement procedures for obtaining certified payroll reports and verifying compliance.

Finding Text

INTERNAL CONTROL OVER MAJOR FEDERAL PROGRAM COMPLIANCE Internal Control: Wage Rate Requirements Compliance Program: Education Stabilization Fund CFDA Number: 84.425 Criteria: OMB Uniform Guidance requires the District to establish and maintain effective internal controls to ensure compliance with Wage Rate Requirements. Condition: Certified payroll reports were not obtained from contractors working on the federally funded construction projects. Verification of Wage Rate compliance was not performed. Cause: The District did not have policies and procedures for monitoring and verifying Wage Rate Requirements compliance. Recommendation: The District should review the policies and procedures for Wage Rate Requirements for federally funded projects. The District should ensure policies require contracts on federally funded projects stipulate prevailing wage payments to contractor employees a requirement. The District should implement policies and precedures requiring certified payroll reports be provided by contractors to the District. The District should implement procedures to verify contractor prevailing wage compliance. Management's Views: Management's views and Corrective Action Plan are included at the end of this report.

Corrective Action Plan

INTERNAL CONTROL OVER MAJOR FEDERAL PROGRAM COMPLIANCE Program: Education Stabliization Fund (CFDA 84.425) Condition: Lack of policies and procedures for verifying and monitoring Wage Rate Requirements. Material Weakness Corrective Action Plan: The District will adopt policies and implement procedures to require previaling wage payments for contractor employees working on federally funded projects. The District will adopt policies and implement procedures requiring contractors on federally funded projects provide certified payroll reports to the District to ensure compliance with Wage Rate Requirements. The District will implement verification procedures to ensure contractor compliance with previaling wage payments to employees. Planned Completion Date: March 31, 2025 Responsible Contact Perosn: Dr Marty Spence, Superintendent (417) 469-3260

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $2.48M
84.010 Title I Grants to Local Educational Agencies $254,255
10.553 School Breakfast Program $101,676
10.565 Commodity Supplemental Food Program $49,755
10.555 National School Lunch Program $45,621
84.358 Rural Education $36,525
10.559 Summer Food Service Program for Children $31,833
10.582 Fresh Fruit and Vegetable Program $26,372
84.173 Special Education Preschool Grants $13,181
84.027 Special Education Grants to States $5,890
93.434 Every Student Succeeds Act/preschool Development Grants $2,700
10.556 Special Milk Program for Children $1,321